* The simulated analysis before launch date was created using Morningstar and is for illustrative purposes only. It provides an indication of hypothetical past performance given historic asset and manager allocation, and cannot be construed as providing an indication of expected future performance. The investor is liable for CGT on any transactions in the units of the underlying unit trusts within the wrap funds. Compulsory investments are not subject to CGT. Performance is calculated using net returns (after fees) of the underlying unit trusts, and quoted excluding wrap fund fees. Performance quoted is pre-tax.Fund performance numbers shown are for a notional portfolio and do not reflect the actual performance of the client invested in the wrap fund due to timing differences of investments or disinvestments of the client. Benchmark returns for CPI are based on actual published returns and an estimated one month return for the month of the report date. ASISA Benchmark returns are the ASISA returns available as at the time of reporting.
The wrap fund aims to provide investors with a high level of income over the short term. The preservation of capital is of primary importance. The fund will consist primarily of income orientated assets with limited exposure to equities (maximum of 20%). Investors in this fund have an investment horizon of 2 years or longer. The fund is compliant with Regulation 28 of the Pension Funds Act, 1956.
Fund Details
Fund Objective
Asset Allocation
Fund Category SA Multi Asset Income
Benchmark CPI+2% over a 2-year rolling period
Risk Profile Conservative
Investment period 1 year or longer
Launch Date 01 July 2016
Fund Size R 4 million
31 July 2017
Performance (%) Fund* Fund Benchmark
Avg SA Multi Asset
Income
1 Month 1.22 0.45 0.80
3 Months 2.05 1.27 1.99
6 Months 4.53 3.55 4.12
1 Year 7.84 6.54 7.90
2 Years (annualised) 7.98 7.28 7.61
YTD 5.43 4.34 4.94
Since Launch 7.80 6.97 7.96
Risk statistics (2 years) Fund*
Returns (annualised) 7.98%
Standard deviation (annualised) 1.59%
% Positive months 91.67%
Maximum drawdown -0.16%
Sharpe ratio 0.44
Cumulative performance - 2 years *
This fund is suitable for investors looking for:
- High level of income over the short term- Capital preservation, with limited exposure to equities - A minimum investment horizon of 2 years or longer
Investor Profile
Monthly Fund Performance* (%) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTDFund 2017 0.86 0.36 1.06 0.99 0.68 0.13 1.22 5.43
Fund 2016 0.27 0.47 1.09 0.63 1.53 -0.08 0.60 1.06 0.14 -0.16 0.67 0.57 6.98
Fund 2015 0.44 0.50 1.58 0.51 0.32 3.39
Fees (% incl. VAT)
Annual wrap fee 0.57
Underlying Manager TER's 0.86
Lalapanzi Conservative
Sanlam Multi Managed Defensive FoF 12.50
SIM Active Income 22.50
SIM Inflation Plus 10.00
Manager Selection (%)Coronation Strategic Income 20.00
Nedgroup Stable 12.50
Prescient Income Provider 22.50
99 Merriman Street, George, 6529. Tel: +27(44) 874 5497. Fax: +27(44) 873 3444. Email: [email protected] Route Life & Investment Brokers
Glacier Financial Solutions (Pty) Ltd, A member of the Sanlam Group-Reg No. 1999/025360/07 Licensed Financial Services Provider
31 July 2017 Lalapanzi Conservative
Global equity markets performed well in July, as the risk-on sentiment was driven by strong corporate earnings from US companies, dovish comments from the US Fed and stronger commodity prices. The rally in commodity prices was sparked by strong Chinese GDP data which surprised the market at 6.9% y/y, primarily driven by robust construction, retail sales, and export data. Emerging markets, including South Africa, benefitted from this risk-on trade and rose strongly.
Global developed market equities gained 2.3% while emerging markets rose 5.5% in USD. Global bonds returned 1.7% while global property returned 1.9%, both in USD. Local markets came out of the gate strongly in July, surging 7% higher to end the month at an all-time high. The FTSE/JSE All Share Index has returned just shy of 10% for the year 2017, largely driven by the strong performance of Naspers. After gaining 14% in July, Naspers has surged 44% for the year 2017 thus far. Gains weren’t limited to Naspers, as the Resource Index rose 13.7% in the month as robust Chinese economic data drove share prices higher. Anglo American (+24%), BHP Billiton (+20%), and Kumba Iron Ore (+14.8%) were the biggest gainers in the index. A further tail-wind for these companies was a weaker rand, which fell against all major currencies in July as an interest rate cut surprised the market. Gains weren’t limited to equity markets, as the All Bond index rose 1.5% and Property 3.7%. Cash was the laggard, returning 0.62% in July. July was a month which handsomely rewarded those who remained invested after lacklustre returns of late.
As a result, funds with a larger skew towards local equities tended to outperform more defensive strategies.
Our current view favours flexible income strategies over local equity, as the outlook for local corporate earnings is muted at this stage. In terms of the global asset classes, however, we still prefer global equities over bonds. We remain cautiously positioned and are constantly monitoring market conditions and conducting manager research to ensure that risk is managed effectively.
Manager Comment Portfolio Manager
Stephan Venter
Bcom (Accounting)Bcompt (Hons) CTABcom (Hons) in Financial Analysis and Portfolio Management
Stephan joined Sanlam Investments as a Portfolio Manager in November 2015, he has 10 years’ experience in financial markets and the financial services industry and is currently working under supervision. He started his career at Deloitte and completed his articles at the Deloitte Cape Town office in 2008 as part of the FIST division focussing mostly on pension funds and asset management clients.
Post articles he traded mostly risk currencies and single stock futures. In 2011 he enrolled at UCT for a second honours degree to further enhance his investment knowledge in the field of financial analysis and portfolio management. During 2012-2013 he lectured financial management, alternative investments and portfolio management at Stellenbosch University. The last 2 years he was part of the Discovery Invest Investment Specialist team advising on constructing retail client portfolios.
About the Portfolio Manager
Manager Information
Sanlam Multi Manager International (SMMI) (Pty) Ltd
Physical address
55 Willie van Schoor Avenue, Bellville, 7530 Postal Address: Private Bag X8, Tygervalley, 7536Website: www.sanlaminvestments.com
Contact Details
Tel: +27 (21) 950-2500 Fax: +27 (21) 950-2126 Email: [email protected]
Investment Committee
The investment committee forms an integral part of the investment management process. The investment committee members are involved in the process of multi management by participating in the Investment Committee Framework (the “Framework”). This Framework provides intermediaries with a platform to share their research and views with qualified investment professionals who will, based on certain constraints, construct a portfolio taking the intermediary’s research into account.
The information contained in this document has been recorded and arrived at by Glacier Financial Solutions (Pty) Ltd (FSP) Licence No. 770 in good faith and from sources believed to be reliable, but no representation or warranty, expressed or implied, is made as to the accuracy, completeness or correctness. Past performance is not necessarily a guide to future performance. Changes in currency rates of exchange may cause the value of your investments to fluctuate. The value of investments and income from them may therefore go down as well as up, and are not guaranteed. The information is provided for information purposes only and should not be construed as the rendering of investment advice to clients. Glacier Financial Solutions (Pty) Ltd and its’ shareholders, subsidiaries, agents, officers and employees accordingly accept no liability whatsoever for any direct, indirect or consequential loss arising from the use or reliance, in any manner, on the information provided in this document. Total expense ratios (TERs) are calculated quarterly and are accurate at the latest available date quoted on this document, intermediary and LISP fees are client-dependent and therefore not reflected. The wrap fund is made up of registered Collective Investment Schemes. The Minimum Disclosure Document of the underlying funds can be obtained from the respective Managers.
99 Merriman Street, George, 6529. Tel: +27(44) 874 5497. Fax: +27(44) 873 3444. Email: [email protected] Route Life & Investment Brokers
Glacier Financial Solutions (Pty) Ltd, A member of the Sanlam Group-Reg No. 1999/025360/07 Licensed Financial Services Provider